Hong Kong Budget 2013 / 2014

The Financial Secretary, Mr. John Tsang delivered his first budget speech for the new government on 27 February 2013. He opened his speech by referring to the first policy address announced by the Chief Executive, Mr. Leung Chun Ying in January 2013.

To support of the initiatives announced, Mr. Tsang set aside HK$60 billion in for four key areas: developing the economy, optimising human resources, investing in infrastructure and caring for people’s livelihood. He also proposed measures with a view to promoting economic growth, investing in the future, and improving employment opportunities and people’s livelihood.

Despite there have been voices of businesses, in particular SMEs, voicing proposing the Government to lower the profits tax rate for businesses with low profits level, Mr. Tsang responded that in order to maintain a simple tax regime, he has not considered applying different tax rates to businesses having different profits level. Instead However, the Financial Secretary proposed one-off measures instead of long-term relief ones to meet the demand of SMEs and middle class. The measures are similar to those implemented in prior years.